Does Life Insurance in UAE Cover Deaths Due to Coronavirus?

Coronavirus (Also known as COVID-19) is a contagious disease that has been declared a pandemic by the WHO (World Health Organization). This deadly virus has been constantly increasing the death toll by affecting people all over the world.

Almost lakhs of people have been tested positive for coronavirus and many of them have succumbed to its hazardous effects. In the UAE alone, thousands of people are affected by this contagious disease and several have been passed away.

In such circumstances, where the uncertainly is continuously rising, it becomes quite important to opt for apt life insurance plans.

An apt life insurance plan does not only safeguards your family members from unforeseen events and financial disasters due to several instances like critical illnesses and accident but also offer financial protection in an unfortunate event of the sudden demise of the policyholder. But some burning questions are - Will life insurance plans cover the death of an insured due to coronavirus? Should I buy life insurance during this coronavirus pandemic?

To know the answers to these questions, read this article further.

For The Existing Policyholders of Life Insurance Plan

If any person opted for a life insurance plan and he/she dies due to coronavirus, then the nominee will receive the death benefits in terms of the sum assured amount.

The nominee of the deceased individual must be aware that the death of the insured caused by any health conditions is usually covered under the life insurance plan. This simply means that the nominee can claim for the death benefit if the policyholder dies due to coronavirus pandemic during the tenure of the policy.

Well, many people are in the dilemma of whether their life insurance plans cover death due to novel coronavirus. So, the answer is YES. In fact, life insurance is not less than a boon for those people who want to protect their loved ones financially.

But there is one doubt that has been troubling people. Will a new life insurance policy cover the death due to coronavirus pandemic or is it just only cover death due to COVID-19 for existing policyholders?

If Any Person Buys Life Insurance policy Now, Will It Cover the Novel Coronavirus?

If you want to buy a life insurance plan during coronavirus pandemic, then you should keep in mind that the premium of the life insurance policy is evaluated by the insurance provider based on your health & medical history. In addition to this, buying life insurance plans amid the global health crisis such as coronavirus can have some significant impact on the premium cost as well as policy acceptance.

Keep in mind that there is a possibility that life insurance providers may hold or even reject your life insurance policy if an individual’s application is in process and if he/she has already affected by this contagious disease coronavirus.

However,

If you reveal your health condition and medical history transparently to the life insurance company at the time of buying, wherein you are not at all affected with COVID-19, then your life insurance policy application will definitely be approved. This enables your nominee to receive death benefits in terms of sum assured in the future if you die due to coronavirus pandemic.

Nonetheless, you, as a policy buyer must go through each and every aspect of your life insurance policy in order to understand the several inclusions as well as exclusions before buying it. Reason being some of the life insurance companies in the UAE don’t proceed a claim for critical illnesses if an insured didn’t abide by the medical advice.

Few Conditions That Needs to Be Fulfilled While Claiming the Life Insurance

For all those individuals who have opted for life insurance plans, in almost all cases, they’re covered and the life insurance company will likely to pay out for death due to coronavirus pandemic. But there are a few conditions that the insured needs to be fulfilled during his/her livelihood for smoother and hassle-free claim settlement:

1.      All the Insurance Premiums Must have Been Paid on the Right Time

The policyholder needs to pay all of the premiums of the life insurance policy on time to the insurer. If, in case, he/she has failed to pay any of the premium then the beneficiary is not enabled to receive sum assured amount after the demise of the insured due to the coronavirus pandemic.

2.      The Reason of Death shouldn’t be suicidal

Since this global health crisis continues to rise and has affected many people across the world, we have seen that there are a few death cases in which a person affected with coronavirus has attempted suicide. Thus, the deaths due to suicide even if you are not affected with COVID-19 are not covered under the life insurance plans. The main reason for death must be due to critical illness such as coronavirus disease, heart attack, etc.

3.      The Policyholder Must Have Nominated Someone

It is compulsory for the policy seeker to nominate someone who would be eligible for receiving the sum assured amount by the life insurance company after the demise of the insured. In the absence of the beneficiary, the insurer will not be able to pay the sum assured amount to any third-person. The company is entitled to offer compensation amount only to the beneficiary appointed by the policyholder at the time of buying a life insurance policy.

In A Nutshell

Any unfortunate event such as coronavirus can happen anytime as life is uncertain and unpredictable. That is why, it is we need to pre-plan and protect ourselves as well as our loved ones by opting for the right life insurance plans. Life insurance is basically a risk management tool that offers financial protection to your loved ones if you die prematurely and unexpectedly.